The Exchange: Kill your terminal 26 Nov 2019 Traders resent expensive tools like Bloomberg and Eikon, but they need them to chat. Goldman-backed Symphony, at $20 a month, wants to break in. CEO David Gurle talks about the challenges of compliance, his deal with China’s Tencent, and the future of finance software.
Lisbon tech confab is antidote to WeWork gloom 11 Nov 2019 Entrepreneurs and investors who joined the 70,000-strong Web Summit crowd were unfazed by plunging valuations of SoftBank-backed companies, including the office sublessor. Still, the reality check is making sustainable growth and positive cash flow the industry’s new watchwords.
WeWork’s rescue choice couldn’t be easier 18 Oct 2019 The cash-guzzling office-sharing outfit has offers of $5 bln more equity from SoftBank or, if investors can stomach it, super-pricey debt which could put the company under even more quickly. If Masayoshi Son is willing to inject more, WeWork’s co-CEOs should bite his hand off.
Wirecard is becoming uninvestable 15 Oct 2019 The $15 bln payments group’s share price fell 19% after the FT said it overstated sales. The company disputes the claims. Persistent volatility makes life hard for short-term traders. Long-term investors may be put off as the latest allegations involve a bigger chunk of revenue.
Wirecard’s 2025 crystal ball smacks of complacency 8 Oct 2019 The $19 bln German payments group reckons transaction volumes, revenue and EBITDA will rise more than sixfold compared with 2018. Such forecasts ignore the risk of big tech groups like Facebook muscling in. Accusations of accounting impropriety still weigh on its valuation.
Digi-banks seem short on financial innovation 1 Oct 2019 Revolut and Monzo wooed millions of customers and secured multi-billion dollar valuations with slick apps and low fees. But they’re not earning much revenue. If flogging subscriptions and commission-based products fails, the temptation will be to lean on old-school bank charges.
Tencent is stuck in a losing battle with Beijing 28 Aug 2019 A year after a video-games crackdown hit the web giant, its $21 bln music-streaming arm may be under antitrust scrutiny. That makes Pony Ma's hopes of building an entertainment empire look fragile. It’s a reminder too that China's tolerance of its new economy champions is waning.
JD deserves to be in trade-war tech discount bin 9 Aug 2019 Chinese new-age stocks have turned volatile. Loss-making JD, the $40 bln Alibaba-rival, has lost up to one fifth its value since July. The retailer’s focus on sales of big-ticket items make it especially vulnerable to slowing growth and trade tensions. Rivals look more nimble.
Masa could do with more Buffett at SoftBank 7 Aug 2019 Quarterly net profit rose 259% on a big stake sale, but operating income fell. More stable cashflows at Masayoshi Son’s group barely cover loan interest. SoftBank is likened to Berkshire Hathaway, which has steadier income from duller companies. That may be worth emulating.
The Exchange: China’s unicorn squeeze 5 Aug 2019 Mainland startups are under pressure, as once-plentiful funds dry up. Jixun Foo, managing partner at GGV Capital and a backer of tech giants like Didi Chuxing, discusses with Alec Macfarlane why the drop-off in financing could ultimately benefit investors.
Banking tests Jack Ma’s lemons-to-lemonade skills 1 Aug 2019 China makes life deliberately hard for online lenders like MYbank, backed by Alibaba's founder. The bank is now raising capital, but what it really needs are elusive deposits. Still, MYbank is growing and profitable, and Ma has experience at being the financial underdog.
JPMorgan shows fintech lender who’s boss 29 Jul 2019 Shares in online upstart On Deck plummeted more than 25% after Jamie Dimon’s $377 bln bank decided it no longer needed help sourcing small-business loans. That may be an overreaction. But it’s a reality check: Supposed financial disruptors need banks more than banks need them.
Gamer favourite Razer’s next level demands focus 23 Jul 2019 The Hong Kong-listed maker of pro-keyboards wants to widen its appeal beyond gamers. It already sells phones, and is dabbling in payments. Distractions can be costly, though, and Razer's main business is doing fine. Doubling down on e-sports instead might help it turn a profit.
Lufax sounds Beijing death knell for peer lenders 18 Jul 2019 China’s top peer-to-peer lender plans to exit the sector, the most telling sign yet that a regulatory crackdown could kill the industry. The Ping An unit and one-time IPO candidate can fall back on money management and other forms of lending. Rivals may be less lucky.
Stalling Didi scrabbles to rev its China engine 18 Jul 2019 The ride-hailing app may try to raise a fresh $2 bln from investors. Even with a dominant share of its home market, loss-making Didi is struggling with regulatory demands and a plethora of small rivals. Lacklustre debuts from rivals Uber and Lyft may put off new backers too.
SoftBank’s robotics IPO faces a reality check 17 Jul 2019 China’s CloudMinds, 35% owned by Masayoshi Son’s Vision Fund, is seeking $500 mln in a U.S. float. The loss-making robot startup reckons AI-powered androids are tomorrow’s cleaners. It’s a tough sell in the real world, where most Chinese tech floats this year are now underwater.
Tencent holds key to China’s e-sports bonanza 15 Jul 2019 DouYu, which lets fans live-stream top video gamers, wants to raise $1 bln in a New York IPO. Competition for star players has crushed margins. Investors will bet backer Tencent, which also owns a stake in a rival, can limit the destruction and push for consolidation.
Amazon could be a smart shopper in Southeast Asia 8 Jul 2019 The U.S. e-commerce giant pushed into Singapore in 2017, but hasn’t tackled the region's larger, faster-growing markets. Indonesia’s $7 bln Tokopedia and Alibaba-owned Lazada are among those scrapping for dominance. Amazon would be a formidable rival if it bought Sea's Shopee.
UK’s fallen fintech star highlights sector perils 2 Jul 2019 Funding Circle shares dropped 20% after it cut growth forecasts in half. The $600 mln peer-to-peer lender’s post-IPO decline underscores the trade-off between managing risk and meeting investors’ growth expectations. Regulators should be on the lookout for less prudent rivals.
Tech’s finance push is disrupting regulators too 25 Jun 2019 Innovations like Facebook’s proposed digital currency challenge established banking rules. New arrivals are hard to pin down, weaken existing players, and invert the risks and rewards of competition. A joined-up global response is necessary - but will be hard to agree.